Take advantage of fixed rate savings offers while they last
Savers looking for a good deal are being urged to secure early amid fears the best rates could disappear.
On Thursday, the Bank of England voted to keep its base rate at 5.25 percent in response to lower-than-expected inflation data released last week.
Economists say this may indicate that interest rates will not need to be raised further to control inflation.
Anna Bowes, of rates scrutineer Savings Champion, says: ‘If the base rate has peaked then some of the best rates could be quickly withdrawn as they may have been overvalued. If you are looking to insure yourself, now is the time to do it.”
Atom Bank last week cut the interest on its fixed-rate bonds by up to 0.29 percentage points. It now offers a six-month fixed-rate bond paying 5.3 percent. Kent Reliance reduced its one-year fixed rate Isa by 0.07 percentage point to 5.71 per cent.
Act fast: Some of the best rates could be pulled quickly as they may have been too expensive.
But savers can still find fixed rate deals of around 6 percent. The National Savings and Investment Guaranteed Growth Bond pays 6.2 percent on a one-year bond. And Nationwide Building Society pays a market-leading 8 per cent on its Flex Regular Saver account. You can pay up to £200 a month.
Savers looking to save larger sums can save up to £500 a month on Yorkshire Building Society’s Loyalty Regular eSaver, which has a rate of 7 per cent.